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EssilorLuxottica SA
(EL)
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Rating:61Neutral
Price Target:
€176.00
▼(-18.41% Downside)
Action:Reiterated
Date:02/18/26
The score is primarily supported by solid financial performance (steady growth, high gross profitability, and improving 2025 free cash flow), but is held back by weaker technical momentum (below key moving averages and negative MACD) and a rich valuation (high P/E with only a modest dividend yield).
Positive Factors
Vertical integration & diversified channels
Owning lens R&D and manufacturing plus frame design and retail creates durable cost, quality and distribution advantages. Vertical integration supports margin retention, faster product development and channel capture, making revenues and margins more resilient over multi‑quarter cycles.
Negative Factors
Notable debt increase in 2025
A step‑up in debt in 2025 weakens the previously improving leverage trajectory and increases interest and refinancing exposure. Higher indebtedness can constrain capital allocation choices, reduce flexibility for opportunistic investments, and elevate risk if cash flows soften.
Read all positive and negative factors
Positive Factors
Negative Factors
Vertical integration & diversified channels
Owning lens R&D and manufacturing plus frame design and retail creates durable cost, quality and distribution advantages. Vertical integration supports margin retention, faster product development and channel capture, making revenues and margins more resilient over multi‑quarter cycles.
Read all positive factors
EssilorLuxottica SA (EL) vs. iShares MSCI France ETF (EWQ)
Market Cap
€77.19B
Dividend Yield1.46%
Average Volume (3M)420.79K
Price to Earnings (P/E)33.1
Beta (1Y)1.03
Revenue Growth7.48%
EPS Growth-2.95%
CountryFR
Employees203,791
SectorGeneral
Sector StrengthN/A
IndustryMedical - Instruments & Supplies
Share Statistics
EPS (TTM)5.04
Shares Outstanding464,247,560
10 Day Avg. Volume450,041
30 Day Avg. Volume420,785
Financial Highlights & Ratios
PEG Ratio-17.40
Price to Book (P/B)3.19
Price to Sales (P/S)4.35
P/FCF Ratio32.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
€243.22Price Target Upside12.76% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering11
EPS Forecast (FY)7.19
Revenue Forecast (FY)€30.46B
EssilorLuxottica SA Business Overview & Revenue Model
Company Description
EssilorLuxottica S.A., established in Paris, France, in 1849, is a global enterprise dedicated to the design, production, and distribution of a wide range of ophthalmic products, including corrective lenses, eyewear frames, and sunglasses. The com...
How the Company Makes Money
EssilorLuxottica makes money primarily by selling eyewear products and related services through a mix of wholesale and direct-to-consumer channels. Key revenue streams include: (1) Ophthalmic lenses: designing and manufacturing prescription lenses...
EssilorLuxottica SA Financial Statement Overview
Summary
Income Statement
78
Positive
Balance Sheet
74
Positive
Cash Flow
71
Positive
| Breakdown | Dec 2025 | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 28.49B | 26.51B | 25.39B | 24.49B | 19.82B |
| Gross Profit | 17.25B | 16.81B | 16.05B | 15.59B | 12.28B |
| EBITDA | 6.54B | 6.55B | 6.18B | 6.10B | 4.71B |
| Net Income | 2.31B | 2.36B | 2.29B | 2.15B | 1.45B |
Balance Sheet | |||||
| Total Assets | 63.90B | 64.26B | 60.52B | 60.56B | 59.41B |
| Cash, Cash Equivalents and Short-Term Investments | 3.54B | 2.25B | 2.56B | 1.99B | 3.33B |
| Total Debt | 14.40B | 13.22B | 11.66B | 12.20B | 13.02B |
| Total Liabilities | 24.40B | 23.26B | 21.63B | 22.41B | 23.54B |
| Stockholders Equity | 38.89B | 40.38B | 38.24B | 37.45B | 35.06B |
Cash Flow | |||||
| Free Cash Flow | 3.77B | 3.35B | 3.33B | 3.21B | 3.52B |
| Operating Cash Flow | 5.29B | 4.87B | 4.86B | 4.78B | 4.54B |
| Investing Cash Flow | -2.64B | -3.62B | -1.72B | -3.29B | -8.13B |
| Financing Cash Flow | -971.00M | -1.65B | -2.36B | -2.91B | -1.97B |
EssilorLuxottica SA Technical Analysis
Negative
215.70
Price Trends
172.71
Negative
184.14
Negative
230.43
Negative
Market Momentum
-1.71
Positive
43.77
Neutral
36.36
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:EL, the sentiment is Negative. The current price of 215.7 is above the 20-day moving average (MA) of 169.40, above the 50-day MA of 172.71, and below the 200-day MA of 230.43, indicating a bearish trend. The MACD of -1.71 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 36.36 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:EL.
EssilorLuxottica SA Peers Comparison
UnderperformOutperform
Sector (55)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
73 Outperform | €2.30B | 17.57 | 20.31% | 3.66% | 2.15% | -2.20% | |
64 Neutral | €82.05B | 18.11 | 19.54% | 2.33% | -4.58% | -13.00% | |
61 Neutral | €77.19B | 33.08 | 6.19% | 1.46% | 7.48% | -2.95% | |
55 Neutral | $6.65B | 3.83 | -15.92% | 6.20% | 10.91% | 7.18% | |
54 Neutral | €30.93B | 420.50 | 0.49% | 2.03% | -14.65% | -93.64% |
* General Sector Average
FR:EL
EssilorLuxottica SA
166.70
-71.18
-29.92%
FR:CDI
Christian Dior
454.80
22.70
5.25%
FR:ITP
Interparfums
26.18
-3.92
-13.02%
FR:KER
Kering SA
252.30
57.93
29.80%
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.